Debt Management: Sources For Help When You Are In Debt
The first step is to decide if the situation is critical or if the debts are just large. Does this person have the incoming funds to meet the minimum payment requirements? If not, this is a critical situation. If he can it is bad but not yet critical. When the situation is that bad the debt will worsen quickly if not handled properly.
If the consumer is not yet at the critical point, a debt counseling agency isn’t his best solution. They use methods individual voluntary arrangement (IVA) or bankruptcy. These are severe measures and are for people with limited resources. The problem here is that his credit score and ability to access financial products can be hurt.
If the consumer is in critical debt mode he needs to get help. He needs one-on-one counseling with a person that isn’t trying to make money off of him. These are several places to contact that can help: Community Legal Advice, National Debtline, Consumer Credit Counseling Service, Citizens Advice Bureau, and Christians Against Poverty. They have websites for websites for the debtor in crisis to contact them for counseling.
Another non-profit organization offers one-on-one debt counseling is InCharge Debt Solutions. All of these organizations will ask for in depth information on the individuals debt condition, finances etc. With this knowledge the counselor will help the individual to work out a solution to getting all of his debts paid and getting him on his financial feet again.
The counselor will know if debt management program is the best answer the counselor will help the debtor design one. If that isn’t a person’s best solution he will get him started with money management education, help him design a budget and refer him to social service agencies if that is something he qualifies for.
If homeowner has a HUD loan and is in a financial crisis (not able to pay bills on time, or have a job or health emergency) he can call a counseling agency that HUD approves and get advice. Another choice is to join a forum like Debt Management Talk, which can be found at https://www.squidoo.com/reduceyourdebt. There are non-profit servicing in various stated like Advantage Credit Counseling Service in Alabama that is a member of the Better Business Bureau and NFCC. They have forty years of experience in as a nonprofit and have help over 400,000 consumers in their struggle to eliminate all of their debts.
These are some more sources of nonprofit credit counseling programs: military bases, universities, housing authorities, credit unions, and branches of the U.S. Cooperative Extension Service. The Department of Housing and Urban Development can help homeowners in debt to find counseling services.
There are numerous places to get the help with debts and advice of nonprofit counseling organizations. Some of them are private nonprofit agencies, some are government agencies and there are forums where a debtor can gain advice from other people who have been in his shoes and have learned some tips and techniques that will help the debtor become debt free.